Define cost object and give three examples.

Question

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Answer 1

Textbook Question

Chapter 2, Problem 2.1Q

Define cost object and give three examples.

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

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01:43

Students have asked these similar questions

QUestion 1

Financial accounting

A company reported the following financial data for the year: ⚫ Net Sales: $920,000 • • Net Income: $78,000 What is the profit margin?

Answer 2

Textbook Question

Chapter 2, Problem 2.1Q

Define cost object and give three examples.

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

01:43

Answer 3

Textbook Question

Chapter 2, Problem 2.1Q

Define cost object and give three examples.

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

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01:43

Answer 4

Textbook Question

Chapter 2, Problem 2.1Q

Define cost object and give three examples.

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

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01:43

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Answer 8

Expert Solution & Answer

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Cost:

Cost refers to the expenses incurred by the business to earn revenue from sales, in other words cost is the amount given in order to get something.

To explain: The cost object and its examples.

Answer 12

Answer to Problem 2.1Q

Cost object refers to the object to which the costs are assigned that is product or department.
Examples of cost object are departments, product lines, customer and project.

Answer 13

Explanation of Solution

Direct or indirect costs are assigned based on product lines, departments, customers and anything based on type of business, these are known as cost object.
Cost object can be used as a cost control measure in cost accounting.

Answer 14

Conclusion

Hence, cost object is something to which cost is allocated for example product lines, departments and customer.

Answer 15

Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3Q Ch. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9Q Ch. 2 - What are three different types of inventory that...

Define cost object and give three examples.

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